Company

Petronet LNG Limited, one of the fastest
growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej,
Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 15 MMTPA,
the Kochi terminal has a capacity of 5 MMTPA.

Natural Gas

Natural Gas consists mainly of Methane and small amounts of ethane, propane and butane. It is transported through pipelines but is extremely bulky. A high-pressure gas pipeline can transport in a day only about one-fifth of the energy that can be transported through an oil pipeline.

Terminals

The Company has set up South East Asia's first LNG Receiving and Regasification Terminal with an original nameplate capacity of 5 MMTPA at Dahej, Gujarat. The infrastructure was developed in the shortest possible time and at a benchmark cost. The capacity of the terminal has been expanded to 10 MMTPA and the same has been commissioned in June, 2009. The expansion involved construction of 2 additional LNG storage tanks and other vaporization facilities. The terminal is meeting around 20% of the total gas demand of the country.

CSR

Petronet LNG, as responsible Corporate/Community/Government Citizens, undertake Socio-Economic Development Programme
to supplement the efforts to meet priority needs of the community with the aim to help them become self-reliant.
These efforts would be generally around our work centres mostly in the areas of Education, Civil Infrastructure,
Healthcare, Sports & Culture, Entrepreneurship in the Community. Petronet LNG also support Water Management and
Disaster Relief in the country thereby help to bolster its image with key stakeholders.

Media Centre

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

India and Qatar are likely to sign deals under which more liquefied natural gas (LNG) could flow in from that country, which would pick up stake in Petronet LNG Ltd.

The possibility of such deals coming through sent the PLL stock surging by 20 per cent today; the scrip closed at Rs 57.90 on the BSE, hitting the upper limit.

India made the offer of an equity stake during a meeting between the Qatar Finance Minister, Mr Yusuf Hussain Kamal, and the Petroleum Minister, Mr Murli Deora, on Thursday, while seeking 10 million tonnes (mt) of additional LNG supply.

Speaking to newspersons, the Petroleum Secretary, Mr M.S. Srinivasan, said that Qatar has been offered an opportunity to pick up Petronet's $100-million foreign currency convertible bonds (FCCB), which upon conversion into equity shares would translate into 7.5-12.5 per cent equity stake.

After subscribing to the FCCB, Qatar could join Petronet in making an offer to buy the LNG terminal of Ratnagiri Gas and Power Ltd (erstwhile Dabhol power plant), which is proposed to be hived off.

Mr Srinivasan said that a team from the Qatar Investment Agency would be in India next week to carry out due diligence for buying stake in Petronet.

It would also decide on which Qatari Government agency would be used for the purpose, he added.

Mr P. Dasgupta, Managing Director of Petronet, said: "We have approvals for the bond issue and Qatar can buy a stake in the company through it."

Officials also said that the two deals - supply of more gas and picking up equity - were independent of each other, as Petronet had earlier offered Qatar a stake in the company.

Qatar, however, did not show much interest at that time.

Qatar Investment Agency is now looking at investing in energy-related projects in India.

According to analysts, the deal with Qatar would ensure regular supply of LNG to the Dabhol plant, which is facing start-up delays because of non-availability of fuel.

"As a shareholder, they would be concerned about the company too," said analysts.

India currently has a contract to buy 7.5 mt of LNG a year from Qatar, and is seeking to raise it to 17.5 mt.

However, the current supply from Qatar is only five mt, said Mr Deora.

"Their response was very positive and the LNG could be brought to Kochi, Ratnagiri and Mangalore LNG terminals."

"We expect to import the additional fuel, which will be mainly used to run power plants, from 2010-11," Mr Srinivasan said.